Apple Is Moving To Take Over Flash Memory Industry From Samsung

For only the second time in recent memory, Apple has used its pile of cash to buy a hardware company and threaten survival of another tech industry. Reports say Apple is ready to spend up to $500 million to acquire Anobit, an Israel-based flash memory maker already used in the iPhone, iPad and MacBook Air. It probably didn’t hurt that the purchase could free Apple’s reliance on its courtroom buddy Samsung.

According to TechCrunch, which cites Israeli news siteCalcalist, Apple is particularly interested in the fabless chip maker for flash storage. Anobit makes a Memory Signal Processor (MSP) that “improve the speed, endurance and performance of flash systems while driving down the cost,” according to the report. The company’s technology also creates the MSP20xxx embedded flash controller used in mobile devices.

The flash memory deal would be the first under CEO Tim Cook’s leadership and only the second time the company acquired a hardware firm. In 2008, Apple paid $278 million for P.A. Semi which later produced custom ARM-based chips for the iPhone and iPad. Today’s deal could also help Apple walk away from a 2005 agreement with Samsung to ensure flash memory for the iPhone, iPad and MacBook Air. Since then, the two companies have fought numerous legal battles as both compete in the smartphone and tablet markets.

Earlier this year, Apple announced it had inked a $3.9 billion deal with unnamed component suppliers, a strategic move that Cook described as “fantastic.” However, such strategic moves to ensure Apple has a ready supply of parts is often met with complaints — largely from suppliers left out in the cold.

In 2010, there was concern the iPhone’s “insatiable demand” for flash memory would hurt the industry. A year earlier, it was the iPod’s turn to take the blame for tight flash memory supplies. That same year, the entire industry jumped on Apple’s infatuation with flash memory. But in a sign that all trends run in circles, the advent of iCloud storage this year was viewed as hurting demand for Apple’s flash memory based hardware.

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How is this acquisition going to affect manufacturing? Anobit “designs” chips that use their patented tech, they do not manufacture them. Apple will still need to outsource the fabricating of the chips.

taylerz

This potential acquisition is probably to balance the leverage Apple has with Samsung. While it’s more likely they’re trying to screw Samsung (see Galaxy Tab), it could be the other way around. Just listing a possible scenario. Samsung makes billions supplying flash to Apple, but I’ve seen Samsung do stupid things after stupid things which makes me believe anything’s possible. One thing’s for sure: don’t f%$# with Apple or you’ll be eating your balance sheet.

Snoop

maybe samsung will now have to pay apple to fabricate the ships that apple purchases from them. even steven, i say.

prof_peabody

“For only the second time in recent memory …”

You can’t remember 2008?

prof_peabody

Anobit is fabless.

Leaver Fast

Apple fans… just dream on.Apple, taking over flash memory industry… is this a sacarstic joke?

diathesis

It seems like this article ignores the fabless part of Anobit.

Someone needs to fabricate the memory. That’s not Anobit. If that’s Samsung, then this seems like it wouldn’t change the Apple/Samsung arrangement very much.

Goldie20

Ed they make the controller chips, not the flash memory. This would be no different than buying Sandforce or Indilinx.

Dilbert A

“Apple Is Moving To Take Over Flash Memory Industry From Samsung”

iPray

Spike Ennis

Has everyone missed the key word. ??? “Apple is particularly interested in the fabless chip maker for flash storage.” “fabless.. means that they do not fabricate the chips only design and farm out to someone…. like samsung???

Spike Ennis

right on. Has everyone but you and I) missed the key word. ??? “Apple is particularly interested in the fabless chip maker for flash storage.” “fabless.. means that they do not fabricate the chips only design and farm out to someone…. like samsung???

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